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Vietnam's condotel ownership landscape has undergone dramatic changes in 2026, finally providing legal clarity for thousands of investors who were previously stuck in legal limbo. The new property laws now allow condotel buyers to receive official ownership certificates, known as "red books," marking a significant shift in how these hospitality-focused properties are treated under Vietnamese law.
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Vietnam's 2026 property law amendments now allow condotel buyers to receive official ownership certificates ("red books") for the first time, with 50-year ownership periods and improved financing options.
Foreign buyers can own up to 30% of condotel units in buildings, while new tax structures and clearer regulations are driving market recovery in major tourist destinations like Da Nang and Nha Trang.
| Aspect | Details | Impact |
|---|---|---|
| Ownership Certificates | Red books now available for compliant condotels | Enhanced legal security for buyers |
| Ownership Period | 50 years standard, up to 70 years in special cases | Long-term investment viability |
| Foreign Ownership | 30% cap per building, 50-year terms | Continued international investment opportunities |
| Financing | Bank mortgages now available with red books | Easier property purchases and improved liquidity |
| Tax Structure | First VND 200M rental income tax-exempt | More attractive rental investment returns |
| Market Recovery | 22% price increases in Da Nang area | Growing investor confidence and market stability |
| Existing Projects | 83,000 units nationwide seeking certification | Gradual retroactive title resolution process |
What exactly changed in Vietnam's property laws around condotels in 2026?
Vietnam's property laws underwent major amendments that took effect in January 2026, primarily through changes in the Land Law and updated regulatory decrees.
The most significant change allows condotels built on commercial and service land to formally receive land use right certificates, commonly known as "red books." This marks the first time condotel buyers have access to official ownership documentation in Vietnam.
The government clarified the certification process to restore investor confidence after years of legal uncertainty. Previously, condotel buyers often purchased units without proper ownership titles, creating a market filled with legal risks and disputes.
As of September 2025, these new regulations are already being implemented across major tourism destinations, with local authorities establishing specific procedures for processing applications.
Are buyers now granted red books for condotels, and if so, under what conditions?
Yes, condotel buyers can now receive red books, but only if their projects meet specific legal requirements.
Condotels must be built on properly zoned commercial and service land with all construction and real estate business licenses in compliance with current laws. The project developer must have obtained all necessary permits before construction began.
The building must satisfy land use requirements, construction standards, and fire safety regulations. Foreign buyers are eligible for red books under the same basic framework as Vietnamese citizens, though they may face additional due diligence checks.
Local authorities retain discretionary power to reject applications on national security grounds, particularly for properties near sensitive areas or border regions.
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How long is the ownership period—do condotels qualify for the standard 50-year leasehold or longer?
Condotel ownership periods are generally set at 50 years, following the standard regulations for commercial land projects in Vietnam.
In special circumstances, the ownership term can be extended up to 70 years for projects with large investment capital and slow capital recovery, particularly in economically disadvantaged areas. This extension must be approved by local authorities during the initial application process.
After the ownership period expires, buyers must renew or renegotiate their land use rights. The renewal process and fees will depend on market conditions and government policies at that time.
Foreign buyers typically receive the same ownership periods as Vietnamese citizens for condotel units, unlike some other property types where foreigners face shorter terms.
Are foreign buyers treated the same as Vietnamese citizens when it comes to condotel ownership rights?
Foreign buyers have similar but not identical rights compared to Vietnamese citizens regarding condotel ownership.
Foreigners face ownership caps of 30% of units in any condominium building and 10% of landed properties in development projects. These restrictions apply to most condotel developments.
Foreign ownership terms are typically 50 years leasehold, potentially extendable, but not full freehold ownership unless the buyer is married to a Vietnamese citizen with proper documentation.
Foreign buyers are eligible for red books under the same certification process, though they may encounter additional paperwork and longer processing times due to security screenings.
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What happens to condotel projects built before 2026—can their owners retroactively get legal titles?
Condotels built before 2026 may be eligible for retroactive ownership certificates if they meet current legal requirements.
The process is more complex and slower for older projects, as they must undergo additional compliance reviews. Local authorities are still developing specific procedures for handling pre-2026 condotels.
Not all existing projects will automatically qualify for red books. Properties built without proper permits, on incorrectly zoned land, or with outstanding legal violations will likely remain ineligible.
As of late 2025, approximately 83,000 condotel units nationwide lacked ownership certificates. The government is prioritizing processing applications in major tourism cities like Nha Trang, Da Nang, and Quang Ninh province.
Owners of pre-2026 condotels should consult legal experts to assess their specific project's eligibility and begin the application process early.
How many condotel units nationwide have already received ownership certificates since the new rules took effect?
Comprehensive data on condotel ownership certificates issued since early 2026 is still limited, as the process is ongoing and managed by local authorities.
The Vietnamese government estimated 83,000 condotel units nationwide were without ownership certificates as of late 2025, representing the total market requiring certification.
The certification process is accelerating primarily in established tourism destinations where condotel developments are concentrated. Cities like Nha Trang, Da Nang, and Ha Long Bay are processing the highest volumes of applications.
Local real estate associations report that several hundred units have received preliminary approvals in Da Nang alone since the new rules took effect, though final certificate issuance can take additional months.
The pace of certification varies significantly by location, with well-regulated provinces processing applications faster than areas with less developed administrative systems.
What specific government agencies are responsible for approving and registering condotel ownership titles?
The Ministry of Natural Resources and Environment (MONRE) serves as the primary agency overseeing condotel ownership registration and issuing land use right certificates.
Provincial and municipal people's committees act as implementing agencies at the local level, handling day-to-day application processing and establishing specific procedures for their jurisdictions.
Department of Natural Resources and Environment offices in each province manage the technical review of applications, including land use compliance and construction permit verification.
Local real estate registration offices handle the final issuance of red books once all approvals are obtained from higher authorities.
The process typically requires coordination between multiple agencies, which can extend processing times but ensures thorough legal compliance.
Are there clear rules on converting condotel units into residential apartments, and how feasible is it in practice?
There are no clear, streamlined rules allowing condotel units to be converted into residential apartments under current Vietnamese law.
Condotels remain legally distinct from residential properties, primarily restricted to hospitality and tourism use on commercial and service land. This legal classification creates fundamental barriers to conversion.
Conversion in practice is rare and extremely difficult due to differences in land use classification, utility infrastructure requirements, and property management structures. The commercial zoning that allows condotels typically prohibits permanent residential use.
Some developers have attempted workarounds through mixed-use project applications, but these require starting the development process from scratch rather than converting existing units.
Buyers seeking residential flexibility should consider purchasing actual residential condominiums rather than expecting future conversion opportunities for condotels.
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What taxes and fees now apply when buying, holding, or reselling a condotel in Vietnam?
The 2026 tax structure introduces several changes that make condotel ownership more attractive for investors.
| Tax Type | Rate/Amount | Application |
|---|---|---|
| Rental Income Tax Exemption | 0% on first VND 200,000,000 annually | All rental revenue below threshold |
| VAT on Rental Income | 5% | Revenue above VND 200M threshold |
| Personal Income Tax | 5% | Rental revenue above VND 200M threshold |
| Capital Gains Tax (Draft) | 20% on net profit | Property sales after 2+ years ownership |
| Short-term Sales Tax | Up to 10% of gross sale price | Properties sold within 2 years |
| Non-agricultural Land Tax | 0.03% - 0.15% progressive | Annual holding tax for urban/commercial locations |
| Business License Fee | Often waived | Condotel owners typically exempt |
What risks remain for investors—are disputes between developers, operators, and buyers still common?
Despite improved legal frameworks, significant risks remain in Vietnam's condotel market that investors must carefully consider.
Legal disputes between developers, operators, and buyers continue to be common, particularly regarding guaranteed rental yields and management contract terms. Many developers promise unrealistic returns that operators cannot deliver in practice.
Developer financial stability remains a major concern, as the market has seen distressed sales and price drops of 30-40% for troubled projects. Buyers should thoroughly research developer track records and financial health before purchasing.
Management quality varies dramatically between operators, affecting both rental performance and property maintenance. Some condotels suffer from poor upkeep that damages long-term value.
Market liquidity can be limited, especially for condotels in secondary tourism destinations or those without proper legal documentation. Selling condotel units often takes longer than traditional residential properties.
It's something we develop in our Vietnam property pack.
How does condotel financing work under the 2026 framework—can buyers secure mortgages more easily now?
The availability of red books for condotels has dramatically improved financing options for buyers in 2026.
Banks now accept condotels with proper ownership certificates as eligible collateral for mortgage loans, something that was previously impossible without clear title documentation.
Leading Vietnamese banks have introduced preferential real estate loan programs specifically targeting condotel buyers, with interest rates as low as 3.99% per annum and flexible repayment terms.
Foreign buyers can also access mortgage financing more easily, though they typically face higher interest rates and stricter down payment requirements compared to Vietnamese citizens.
The improved financing landscape is driving increased market activity, as buyers no longer need full cash payments to purchase condotel units.
Looking ahead, what is the projected impact on condotel prices, rental yields, and overall market growth in Vietnam over the next five years?
Vietnam's condotel market is positioned for steady growth as legal clarity drives renewed investor confidence and improved market fundamentals.
1. **Price Recovery and Growth Trajectory** - Major tourist cities like Da Nang, Nha Trang, and Quang Ninh are already experiencing price increases of up to 22% as of late 2024 - High-quality projects with proper legal documentation are commanding premium prices - Secondary markets in emerging tourism destinations are expected to see gradual price appreciation - Overall market stabilization is reducing the extreme price volatility seen in previous years - Premium condotel projects in prime locations are likely to outperform budget developments2. **Rental Yield Projections** - Rental yields remain closely tied to tourism recovery and location quality - Well-managed condotels in established tourism hubs are reporting improved occupancy rates - The tax exemption for rental income below VND 200 million annually improves net yields for smaller investors - Seasonal fluctuations will continue to affect rental performance, particularly in beach destinations - Professional management companies are becoming more important for maintaining competitive yields3. **Market Growth Drivers** - Improved mortgage financing is expanding the buyer pool beyond cash-only investors - Foreign investment is expected to increase as legal risks diminish - Vietnam's growing domestic tourism market provides additional rental demand - Infrastructure improvements in key tourism provinces support long-term growth - Government tourism promotion policies are likely to benefit condotel operators4. **Risk Factors to Monitor** - Regional economic conditions and currency fluctuations affecting international tourism - Potential changes in foreign ownership regulations - Environmental and climate risks in coastal condotel locations - Competition from traditional hotels and alternative accommodation options - Ongoing resolution of legacy legal issues for pre-2026 projectsIt's something we develop in our Vietnam property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Vietnam's 2026 condotel reforms represent a watershed moment for the country's hospitality real estate sector, finally providing the legal clarity that investors have sought for years.
While significant opportunities exist, particularly in established tourism markets, buyers must carefully evaluate project quality, developer credibility, and local market conditions before making investment decisions.
Sources
- VietnamNet - Condotels to be granted red book
- VietnamNet - Ownership certificates to be issued to condotels
- TLK Law Firm - Condotel ownership certificates
- VietnamNet - Resort real estate more attractive with red book status
- B-Lawyers - Legal risks for condotels under Vietnamese laws
- Realtique - How foreigners can buy apartments in Vietnam
- Builds and Buys - Vietnam real estate investment guide
- VietnamNet - Da Nang real estate market welcomes new condotel development wave
- ASL Gate - Legal perspectives on formalizing the condotel model
- TPM - Property rental tax obligations